Track daily trends of the Indian stock market. This blog is for discussion of Trends in the national stock exchange (NSE) and trading stocks. Since the Blog is not by a trader - stock market analysis and investment ideas are unbiased.

Tuesday, February 3, 2009

I will not be able to say off the hand as to where we go but by seeing the Nifty candles the charts are following a narrowing trend and nearing a breakout point. I will pray that it is in the positive sense but then no points for guesses at the moment. I will again say – there is no way I can give you where we are headed to – do not bet too strongly at a breakdown. It may surprise everyone. Should I say that the markets are fed-up of bad news? The worst of news is reacted mildly and a tinker of good news gives a support. That’s good. Mind you that this formation (trend narrowing) is not only made in Nifty – it has been made in majority of the stocks that matter on nifty. The stocks have moved into a narrow range begging for a breakout.

The day today was not really bad – it could have been but it was not.The 5 EMA is close to crossing over the 20 EMA. 20 EMA however keeps its distance from the 50 EMA. The ADX is confusing if we see in the smaller time frame – just take it in a broader perspective then it shows that whenever the the markets have gained in the last three months – the ADX has shown strength. Whenever however – the markets fall – the ADX turns weak. I will take this as a bullish sign. MACD has no divergence – so can tip any side. RSI is not bad either. Climbing towards 50 and hopefully will go beyond. Slow Stochastic has dropped from the overbought zone. TRIX is good and started looking up. So purely by the Candles – my call would be green times to come.

The global cues are mixed at the best – Asia had Nikkei down 0.62% and hang Seng was down 0.66% – Strait Times was green 0.39%. Europe is all green at the moment. FTSE up 1.13%, DAX up 1.00% and CAC 0.75%. There is still time for the markets close there so watch out where they go too.US is undecisive but green with the report that the buyers have snapped up foreclosed properties. That may actually be a good news. The Dow is up 0.28%, Nasdaq up 0.35% and S&P up 0.43%. They are choppy –and it is still a long way to go so wait and watch is the word for it.

Provisionally FIIs have sold 278 Cr and DIIs sold 7.75 Cr. With both the FIIs and DIIs selling – we closed green? impressive.

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If there's one thing I'm massively bearish on...it's India's property prices. Developers have got the roads taken care of but with the power cuts and tanker supplies....we're being sold junk at world-record prices.

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About Me

Retired from Army after 22 years of service. Now pursuing my loves - photography, wildlife (birding in particular) and traveling...I have jumped from Canon to Nikon. (Earlier I had Canon 7D mark ii along with 100-400mm mark ii lens)

Disclaimer

I am no good in stocks -- I do this just for the heck of it. I am not employed by anyone who would have vested interest in my recommending or talking good/bad about any particular stock or company.If you find anything worthwhile -- you are free to take it -- or for that matter lump it.